Exercise caution to prevent tax season identity thefts

Every year, Carbon County residents spend many hours preparing taxes hoping that they will not wind up owing the state or government money.

But what many consumers fail to realize is that the government isn't the only one who may collect their hard earned cash - so may identity thieves.

In a time where one man's trash is another man's treasure, it is important to ensure that the multitude of documents used to prepare taxes are appropriately stored or destroyed.

In 2005, consumers across the United States lost nearly $57 billion to criminals who stole their identities.

Although the statistic may be alarming, there are ways for Carbon County residents to protect themselves from related crimes, especially during the tax filing season.

While it may appear easier to file everything, paper trails are still an identity thief's dream.

Recent research conducted by shredder manufacturer Fellowes Inc. indicates that nearly 40 percent of Americans believe identity theft is most likely to occur through online exchanges.

But in reality, data collected nationwide indicate that Internet fraud represents only 9 percent of the total number of identity theft crimes reported in the United States.

The majority of identity theft crimes occur through paper documents and stolen information, making it crucial to properly store or destroy the sensitive documents used during tax season.

"Tax season can leave consumers with mountains of paperwork, which makes them more vulnerable to identity theft," explained Kristen Gehrig, global marketing director for Fellowes. "Shredding is one of the easiest ways to ensure your information doesn't end up in the wrong hands, but you also need to be conscious about what documents are important to keep."

Simply knowing what needs to be filed or shredded will alleviate potential problems. In the event information must be retained for extended periods of time, the documents should be stored in a secure place.

Examples of information include:

Tax returns - The U.S. Internal Revenue Service has three years to challenge information in returns and six years to conduct an audit based on unreported income.

People should keep tax returns and supporting records like W-2s and 1099s for at least seven years.